New York mayoral candidate Andrew Cuomo worked as a paid adviser to an offshore cryptocurrency exchange as it dealt with a federal investigation before it pleaded guilty to operating illegally in the US, according to two people familiar with the matter.
Cuomo advised OKX, an exchange based in the Seychelles, on policy matters and how to best deal with the investigation, which was conducted by the FBI and prosecutors from the Southern District of New York, said the people, who requested anonymity to discuss sensitive matters. The work was done after Cuomo resigned as the governor of New York amid a scandal in 2021.
Cuomo also encouraged OKX to bring his longtime ally, Linda Lacewell, to its board of directors, the people said. Lacewell, the former superintendent of the New York Department of Financial Services, was named OKX’s chief legal officer this week. It wasn’t immediately clear how much Cuomo was paid for his work or when his arrangement with the company ended. The two people who described his work said he spoke with company executives regularly and counseled them on how to respond to the criminal investigation.
“Since he left office, among other activities, Governor Cuomo has been engaged in the private practice of law representing individuals and corporations in a variety of matters and does not comment on those private client matters,” said Rich Azzopardi, a campaign spokesperson. “He has not represented clients before a New York city or state agency and routinely recommends former colleagues for positions.”
In a statement, OKX said Wednesday that it doesn’t comment “on our relationships with outside agencies or firms.” It added that Lacewell was appointed “for her regulatory expertise and board contributions since 2024.”
In late February, OKX’s parent company agreed to pay more than $500 million in fines and penalties for failing to register as a money transmitting business.
Founded in 2017, OKX operates one of the world’s largest crypto exchanges. The company says that its users in more than 100 countries can trade about 350 cryptocurrencies. US prosecutors alleged in court filings that the exchange had porous internal controls and that insiders encouraged customers to provide false information to avoid “know your customer” rules.
“For over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system,” said acting US Attorney Matthew Podolsky in a February news release. “As a result OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds.”
When the exchange pleaded guilty, its outside counsel in the case noted that “today’s settlement contained absolutely no charges of money laundering.”
Prosecutors said in the news release that the company cooperated during the investigation and took steps to improve its systems. In a February statement, the company said it had made “substantial strides in building out a robust compliance infrastructure” before it pleaded guilty.
Last month, Cuomo joined a crowded field of Democratic candidates in the mayoral election set for November, including current Mayor Eric Adams. Cuomo, who is seen as the front runner, resigned as New York’s governor in 2021 amid sexual harassment allegations that he has denied. According to a financial disclosure, first reported by Politico, Cuomo started a consulting business shortly after he left office. That business earned $500,000 last year but the campaign has not disclosed the names of any clients.
